Home Builders

Background

The home builders industry consists of all residential construction companies, including the builders of homes, apartments, condominiums and mobile homes. The industry experienced a massive boom during the last decade that ended with one of the greatest busts in history: the bursting of the housing bubble and meltdown of the sub-prime lending market in 2007 and 2008.

These events crippled the industry as home construction ground to a near halt.

While home builders in 2009 and 2010 have been seeking help from a Democratic-controlled Congress and White House, the industry is a major supporter of Republican politicians. Individuals and political action committees associated with the industry contributed $11.2 million at the federal level during the 2008 campaign cycle with 65 percent going to Republicans. During the last two decades, the industry has given Republicans 70 percent of its $65 million in campaign contributions. Only recently has the industry begun to give more -- but not yet a majority -- of its contributions to Democrats. In 2009, the industry contributed $2.2 million, with 45 percent going to Democrats.

During the home building boom, the industry steadily ramped up both its campaign contributions and federal lobbying effort. Between the 2002 and 2004 campaign cycles the industry contributions nearly doubled.

On the federal lobbying front, the industry spent nearly $3.89 million in 2004. Five years later, in 2009, the industry spent more than $9.83 million on lobbying. Nearly half of that amount was spent by the industry's trade association, the National Association of Home Builders, a Center for Responsive Politics "Heavy Hitter." Despite the recession, the industry's lobbying expenditures have continued to increase year after year.

Issues of importance to the industry include health and labor regulations, immigration reform (as the industry relies on an immigrant heavy workforce), federal housing and tax policy and energy/environmental policy. Recently, the industry has been focused on securing support and assistance from the federal government in the form of stimulus aid and policies that would encourage new home construction or renovation, and support new mortgage lending.

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